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The consultation paper has been prepared by the FSA in consultation with the Bank of England. Subsequent papers will cover further changes to the existing FSA Handbook, together with new policies resulting from regulatory reforms proposed in the Bill.
The Bill (and the secondary legislation supporting it) provides for the creation of the new UK regulatory architecture, including the creation of the Financial Policy Committee (FPC), the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). The Bill proposes changes to the Financial Services and Markets Act 2000 and a number of other Acts of Parliament.
In addition to other preparations the regulator is making for the creation of the new PRA and FCA rulebooks, some substantive changes to the existing FSA Handbook are required to align the new rulebooks with the future objectives and functions of the PRA and FCA. It is this category of substantive changes that this paper consults on.
This paper will be of interest to all firms. Consumers may be particularly interested in the proposed changes to the requirements for firms to disclose to their customers who their regulator is, as firms will be using this new wording from next year.
Comments are requested by 12 December 2012. The FSA will review all responses, and final rule instruments and Policy Statements will be issued by the new regulators, once the PRA and the FCA acquire their legal powers.
Because the Bill is still going through the parliamentary process, final rules and guidance may be subject to changes to the Bill (or associated secondary legislation). If any changes have a significant policy effect on proposed FCA and PRA Handbook text, the FSA says it may need to re-consult.